Quick Answer: Nelnet denied cosigner release due to a 2008 late payment, and refinancing elsewhere would likely double the current 4.25% rate. The borrower should request Nelnet’s formal cosigner release process or explore replacing the current cosigner with someone else.
“Dear Steve,
I have a private loan through Nelnet with about $24k (from $35k) left. My father is in the process of buying a business and needs me to take him off as a cosigner but when I called Nelnet they would not do this because I was 15 days late on a payment back in 2008. Are there other companies that I can move this loan to that will offer a comparable interest rate (4.25%) to what I have now? Should I call Nelnet back and try and talk to someone else?
Thank you in advance,
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
Steve”
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Dear Steve,
Do I know of another lender that would move the loan at the low rate? No. Depending on your credit you could turn to someone like LendingClub.com to payoff the loan and move it in your name but most certainly the rate would be double or more.
You can always try to talk to Nelnet about it but the reason they have cosigners is so if you don’t pay they will go after the other party.
Ask them for a cosigner release form, in case they actually have a process like that. Alternatively you could ask them about replacing him as a cosigner if you knew of someone else willing to be a replacement cosigner for you.
Please post your responses and follow-up messages to me on this in the comments section below.
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